OCTG
US rig count inches up, Canada's count tumbles
Written by Becca Moczygemba
January 2, 2024
Domestic rig counts creeped up in the last 2023 report from Baker Hughes. However, Canadian firms cut back significantly on their active rotary rigs.
US rig count
The US rig count inched up by two from the previous week’s count, to a total of 622, as of Dec. 29. Oil rigs increased by two to 500, while the number of gas rigs went unchanged at 120. Miscellaneous rigs also remain unchanged at two.
Compared to the same period one year ago, the US count is down by 157. There are 121 fewer oil rigs, 36 fewer gas rigs, while miscellaneous rigs are unchanged at two.
Canadian rig count
Canada’s drilling firms dropped active rigs from 146 to 86, off 60 from the previous week. Oil rigs dropped by 54 from 81 to 27 and gas rigs moved down from 65 to 59.
Year over year there are two more oil rigs and the same amount of gas rigs. Overall, there are two more rigs than there were at the same time in 2022.
International rig count
The international rig count is updated monthly. The total number of active rigs during the month of November was 978, up 16 from the previous month, and increasing by 68 from November 2022.
The Baker Hughes rig count is important to the steel industry as it is a leading indicator of demand for oil country tubular goods (OCTG), a key end market for steel sheet.
A rotary rig rotates the drill pipe from the surface to either drill a new well or sidetrack an existing one. Wells are drilled to explore for, develop, and produce oil or natural gas. Baker Hughes’ rotary rig count includes only those rigs that are significant consumers of oilfield services and supplies.
For a history of the US and Canadian rig counts, visit the rig count page on our website.
Becca Moczygemba
Read more from Becca MoczygembaLatest in OCTG
Active rig counts stable this week
US rig activity has remained in multi-year low territory since June. Drilling in Canada has edged lower across the last few weeks but remains historically strong.
Northwest Pipe’s Q3 profits soar, sees strong end to ’24
Northwest Pipe’s third-quarter earnings jumped over 76% on-year as the company expects a strong finish to 2024.
Active rig counts stable in US and Canada
US drill rig activity saw a slight increase from last week but continues to hover near multi-year lows. In Canada, rig counts dipped last week but near one of the highest levels recorded in the past seven months.
September energy market update
In this Premium analysis we cover oil and natural gas prices, drilling rig activity, and crude oil stock levels in North America. Energy prices and rig counts are advance indicators of demand for oil country tubular goods (OCTG), line pipe, and other steel products.
Active rig counts dip in US and in Canada
US rig counts remain near multi-year lows, which is the territory they have been in for the last three months. Canadian counts have edged lower in the past two weeks, slipping from a six-month high earlier this month.